The rental property market is thriving despite or partly because of the economic slowdown.
From individuals who rent out second homes through to entrepreneurs, activity is buoyant.
That said, overall the market is subdued, with lending flat over the past five quarters. With a market of over 1.2 million buy-to-let mortgages there is an enormous pool of potential buildings and contents customers. So the questions advisers need to ask themselves are:
- How many clients do you have with properties they rent out?
- Have you arranged buy-to-let mortgages and left it to the client to get buildings and contents cover?
- How many of your clients have a standard home insurance policy that doesn’t provide the protection they need?
- Have they told their insurer the property is rented out?
Search your client bank to see which clients are landlords. Build this into your annual reviews and find out whether there is property inadequately insured. With low interest rates clients won’t be coming to you for remortgages – you need to go to them.
Add value to your client relationship by recommending a specialist landlord product including cover such as rent arrears and legal costs.
Once clients have cover tailored to their needs they are less likely to shop around at renewal which is great news for ongoing renewal commission. Don’t let these opportunities pass you by.